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Amazon buys speech-recognition company in challenge to Apple's Siri

By Alistair Barr

Reuters

Posted:
01/24/2013 10:34:56 AM PST

SAN FRANCISCO -- Amazon.com said on Thursday that it acquired speech-recognition company Ivona Software, a sign the world's largest Internet retailer may be looking to develop more services similar to Apple's (AAPL) Siri voice-based search product.

Amazon did not say how much it paid for Poland-basede Ivona and an Amazon spokeswoman declined to comment on a purchase price.

Ivona's technology already supports several features on Amazon's Kindle Fire tablet computers, such as "Text-to-Speech," said Dave Limp, who oversees the Kindle business.

"We look forward to building great products to deliver world-class voice solutions to customers around the world," Limp said in a statement.

"The Ivona acquisition could provide some technology on the Kindle to compete with Siri, although I would argue that Siri has not been all that was expected of it so far," said Kerry Rice, an analyst at Needham & Co.

Ivona could also help Amazon expand its e-book market to more people with disabilities, such as the blind, Rice added.

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Ivona already works with organizations supporting blind and visually impaired people, including the Royal National Institute of Blind People.

Amazon shares rose 3.1 percent to $276.61 in morning trading on Thursday and hit a record $276.65 in earlier action.